Posted on: Friday, May 3, 2002

Lex Brodie's Tire Co. sold in foreclosure

Associated Press

An Arizona-based commercial finance company has acquired O'ahu tire retailer Lex Brodie's Tire Co. in a foreclosure action.

The foreclosure sale to Finova Group Inc. was completed April 23 and includes Lex Brodie's four O'ahu locations on Queen Street, Kalihi Street, Farrington Highway in Waipahu and Kamehameha Highway in Pearlridge.

The tire company has been owned since 1991 by Tennessee businessman John Mayo. He became a partner with founder Lex Brodie in 1983, and took over the business eight years later.

A Finova spokeswoman said the firm previously had a financing arrangement with Mayo, who reached a deal in November to expand the Lex Brodie's chain by purchasing about 25 gas stations on O'ahu owned by Dallas-based U.S. Restaurant Properties.

Richard Wilenski, general counsel for U.S. Restaurant, said the purchase was supposed to close this month, but the deal fell apart at the end of March after it sparked a complicated legal battle. The legal mess blocked the deal between U.S. Restaurant and Lex Brodie's, but it is not clear what led to the foreclosure of the long-standing Hawai'i tire business.

Brodie said he had heard that a lender was taking over the company, but said he hadn't talked with Mayo about the situation for the past six weeks or so.